i will be going bankrupt but i still owe friends money

spiralofdebt

hi i am nearly 20 grand in debts, have collection agencies phoning me daily. i had a meeting with the CAB and was advised bankruptcy is probably my only option.

the thing is I owe £1500 to a couple of close friends, and if I go bankrupt then I wont be starting again with a clean slate. trying to pay back this debt could end up causing problems because my budget is very tight (even though i am back in a job now).

i was wondering if anyone has any ideas on a way to pay back these debts to friends before going bankrupt?

robsimps53

i think the best thing you can do here is tell your friends the situation you are in and come to some arrangements with the them, i cant realy see any other way you can solve this without losing your friends

Merry_Gentry

You would only be able to pay your friends out of any surplus - if you tried to pay them back before going BR it would be seen as favouring a creditor; explain all of this to them and see if they will accept small payments from your surplus.

spiralofdebt

its just my friends have been asking me when i can pay them back and i have to keep making excuses one of them needs it very soon and the other by the summer. i wish i had never borrowed from them i should have realised i was sinking earlier on and decided to go bankrupt earlier. at least with my 'official' debts i can have them written off but i cant do that with friends debts. maybe i should have got some more loans somehow instead of from friends.

creditpunch

Don't worry about woulda, shoulda, coulda's its too late. I have £30k with family and i borrowed it to live and manage the debt i was already in. if only i stopped then and faced my inslovency I wouldn't have this non removable debt. I will be paying my family back with my surplus and I am lucky they are understanding although granted anxious as these are hard times for all.

If you work put up a SOA (Statement of affairs and see where you can make savings the guys on the sight are really good and informative. if you are commited to paying them back you may have to cut back on the living allowance agreed by the OR.

If there is no surplus there you really have to be open and honest with your friends and either get more time.

You can assess all the options before making the BR decision but at least you will be well informed

Good luck, keep posting and keep heart

JPS29

If you pay them before you go BR and the OR spots it they could ask your friends for the money back as you have given them preferential treatment as a creditor. Best thing to do is come clean and let them know the situation. If they are "true" friends they will understand. I didn't even include money owed to family/friends in my BR as these I saw as moral debts, which I have paid post BR. Hopefully BR will free up some surplus to pay them back quicker.

lisamummytoarchieplusbump

with BR you get a much better living allowence so will get a good surplus if you either cut back or just give them your left overs.

so say you normally spend £200 a month on shopping but your SOA for BR allows you £250, theres the extra

have you already posted up your SOA? if not use this link and have the experts on here look over it im sure you will be able to find the money out of the living allowence to pay back a good amount

http://www.makesenseofcards.com/soacalc.html

lisa